Stellar (XLM) Partners With Mercado Bitcoin To Work On Brazil’s CBDCs

May 26, 2022 6:16 pm

Stellar just announced that they have now have a partnership with Mercado Bitcoin as part of an initiative called the LIFT Challenge Real Digital.

This challenge is a unique opportunity that is advocated by both the Central Bank of Brazil as well as the National Federation of Associations of Central Bank Servers which makes it a great way for XLM to get more exposure within the country.

The Stellar network will be used to support all of Mercado Bitcoin’s use cases in this challenge due to it being a well-known blockchain that can be used as an intermediary currency in transactions that involve two currencies.

As a result of this new announcement, the price of XLM already reacted by increasing roughly 2% in the last 24 hours despite current bear market conditions.

CoinTelegraph reports:

According to the statement, Mercado Bitcoin selected the Stellar network due to the speed, efficiency and security of the protocol.

“We are in a consortium of companies that have the structure and ambition to build robust solutions for the financial market through blockchain technology.

Utilizing the Stellar network will allow us to deliver a complete case for evaluation by the Central Bank,” said Reinaldo Rabelo, CEO of Mercado Bitcoin.

In addition to the consortium created by Mercado Bitcoin, the Central Bank of Brazil also chose the DeFi Aave (AAVE) protocol and ConsenSys in partnership with Visa and Microsoft to develop use cases for the nation’s Real Digital.

It was previously reported by the president of Brazil’s Central Bank that the nation will be conducting pilot tests of its digital currency this year.

The Real Digital Initiative will create the opportunity for significant progress to be made in this area of CBDCs which will also involve DeFi and smart contract use cases.

The fact that Stellar was chosen for such an important initiative within the country speaks volumes on the technical capability of the Stellar network.

Specifically, the built-in compliance tools and its design being made for asset issuance made it the preferred choice for Mercado Bitcoin to build a solution on top of its network.

Invezz.com reports:

In order for us to get a higher perspective as to what kind of value point this is for the cryptocurrency, we will go over its all-time high point of value, as well as its performance throughout the previous month.

Stellar (XLM) had its all-time high on January 3, 2018, when it reached a value of $0.875563.

When we take a look at its performance throughout the previous month, Stellar (XLM) had its highest point of value on April 4 at $0.237, while its lowest point was on April 30 at $0.1765.

Here we can see that from the start of April to the end of April, the token has seen a decrease in value of $0.0605 or by 25%.

However, with its current price point of $0.131, XLM is a solid buy due to the fact that, as its use-cases and ecosystem grow, the token can reach a value of $0.25 by the end of June 2022.

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